ARKW vs. SMH

Last updated Aug 4, 2026

ARKW (ARK Next Generation Internet ETF) and SMH (VanEck Semiconductor ETF) are both exchange-traded funds - ARKW is a Mid Cap Growth Equities fund actively managed by ARK, while SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index. ARKW is actively managed, while SMH is passively managed. Over the past 10 years, ARKW returned 21.34%/yr vs 33.99%/yr for SMH. Their 0.67 correlation means they have sometimes moved together and sometimes differently. ARKW charges 0.76%/yr vs 0.35%/yr for SMH.

Performance

ARKW vs. SMH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ARK Next Generation Internet ETF (ARKW) and VanEck Semiconductor ETF (SMH). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ARKW achieves a -4.64% return, which is significantly lower than SMH's 51.46% return. Over the past 10 years, ARKW has underperformed SMH with an annualized return of 21.34%, while SMH has yielded a comparatively higher 33.99% annualized return.

ARKW

• 1D: 2.95%
• 1M: -2.97%
• 6M: 4.60%
• YTD: -4.64%
• 1Y: -4.74%
• 3Y*: 32.39%
• 5Y*: -0.92%
• 10Y*: 21.34%
• ALL TIME*: 19.87%

SMH

• 1D: 0.91%
• 1M: -7.91%
• 6M: 33.70%
• YTD: 51.46%
• 1Y: 92.69%
• 3Y*: 53.04%
• 5Y*: 32.99%
• 10Y*: 33.99%
• ALL TIME*: 11.09%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
ARKW ARK Next Generation Internet ETF	$8.17M	$12.26M	$13.73M
SMH VanEck Semiconductor ETF	$8.29B	$7.23B	$7.12B

ARKW vs. SMH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ARKW ARK Next Generation Internet ETF	-4.64%	38.93%	42.27%	96.89%	-67.49%	-18.85%	157.44%	35.76%	4.24%	87.29%
SMH VanEck Semiconductor ETF	51.46%	49.17%	39.10%	73.38%	-33.53%	42.13%	55.53%	64.45%	-9.05%	38.48%

Correlation

The correlation between ARKW and SMH is 0.61, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.61
Correlation (3Y) Balances recent behavior with more history.	0.62
Correlation (5Y) Shows whether the relationship held over a longer period.	0.66
Correlation (10Y) Provides a long-term view across more market conditions.	0.68
Correlation (All Time) Calculated using the full available price history since Sep 30, 2014	0.67

The correlation between ARKW and SMH has been stable across timeframes, ranging from 0.61 to 0.68 - a consistent structural relationship.

ARKW vs. SMH - Sectors Allocation Comparison

Sectors	ARKW	SMH
Technology	49.7%	100.0%
Consumer Cyclical	16.8%	-
Communication Services	15.3%	-
Financial Services	14.7%	-
Industrials	3.5%	-
Basic Materials	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

ARKW vs. SMH — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

ARKW

ARKW Risk / Return Rank: 9
ARKW Sharpe Ratio Rank: 9
ARKW Sortino Ratio Rank: 10
ARKW Omega Ratio Rank: 10
ARKW Calmar Ratio Rank: 10
ARKW Martin Ratio Rank: 9

SMH

SMH Risk / Return Rank: 88
SMH Sharpe Ratio Rank: 92
SMH Sortino Ratio Rank: 84
SMH Omega Ratio Rank: 85
SMH Calmar Ratio Rank: 89
SMH Martin Ratio Rank: 91

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

ARKW vs. SMH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ARK Next Generation Internet ETF (ARKW) and VanEck Semiconductor ETF (SMH). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	ARKW	SMH	Difference
Sharpe ratio: Return per unit of total volatility	-0.14	2.43	-2.57
Sortino ratio: Return per unit of downside risk	0.03	2.80	-2.77
Omega ratio: Gain probability vs. loss probability	1.00	1.37	-0.37
Calmar ratio: Return relative to maximum drawdown	-0.13	3.79	-3.92
Martin ratio: Return relative to average drawdown	-0.25	15.18	-15.43

ARKW vs. SMH - Sharpe Ratio Comparison

The current ARKW Sharpe Ratio is -0.14, which is lower than the SMH Sharpe Ratio of 2.43. The chart below compares the historical Sharpe Ratios of ARKW and SMH, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

ARKW vs. SMH - Drawdown Comparison

The maximum ARKW drawdown since its inception was -80.52%, smaller than the maximum SMH drawdown of -84.96%. Use the drawdown chart below to compare losses from any high point for ARKW and SMH.

Drawdown Indicators

	ARKW	SMH	Difference
Max Drawdown Largest peak-to-trough decline	-80.52%	-84.96%	+4.44%
Max Drawdown (1Y) Largest decline over 1 year	-36.21%	-24.62%	-11.59%
Max Drawdown (3Y) Largest decline over 3 years	-36.21%	-35.74%	-0.47%
Max Drawdown (5Y) Largest decline over 5 years	-77.36%	-45.30%	-32.06%
Max Drawdown (10Y) Largest decline over 10 years	-80.52%	-45.30%	-35.22%
Current Drawdown Current decline from peak	-23.57%	-18.46%	-5.11%
Average Drawdown Average peak-to-trough decline	-23.95%	-40.89%	+16.94%
Ulcer Index Depth and duration of drawdowns from previous peaks	19.38%	6.13%	+13.25%

Volatility

ARKW vs. SMH - Volatility Comparison

The current volatility for ARK Next Generation Internet ETF (ARKW) is 9.38%, while VanEck Semiconductor ETF (SMH) has a volatility of 14.15%. This indicates that ARKW experiences smaller price fluctuations and is considered to be less risky than SMH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ARKW	SMH	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.38%	14.15%	-4.77%
Volatility (6M) Calculated over the trailing 6-month period	25.80%	32.94%	-7.14%
Volatility (1Y) Calculated over the trailing 1-year period	33.40%	38.50%	-5.10%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	43.79%	36.51%	+7.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	37.84%	33.33%	+4.51%

ARKW vs. SMH - Expense Ratio Comparison

ARKW has a 0.76% expense ratio, which is higher than SMH's 0.35% expense ratio.

Dividends

ARKW vs. SMH - Dividend Comparison

ARKW's dividend yield for the trailing twelve months is around 1.67%, more than SMH's 0.20% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ARKW ARK Next Generation Internet ETF	1.67%	1.59%	0.00%	0.00%	0.00%	0.17%	1.29%	0.00%	13.05%	2.05%	0.00%	2.29%
SMH VanEck Semiconductor ETF	0.20%	0.31%	0.44%	0.60%	1.18%	0.51%	0.69%	1.50%	1.88%	1.43%	0.80%	2.14%

Frequently Asked Questions

Can I hold both ARKW and SMH in my portfolio?

ARKW and SMH have a correlation of 0.61, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ARKW or SMH?

SMH has higher volatility (14.15%) compared to ARKW (9.38%). In terms of maximum drawdown, ARKW dropped -80.52% vs SMH's -84.96%.

Which ETF is better, ARKW or SMH?

On 10-year performance, SMH leads with 33.99% vs 21.34% for ARKW. On fees, SMH is cheaper at 0.35% per year. On volatility, ARKW has been the lower-risk option at 9.38%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ARKW or SMH?

Over the 10-year period, SMH has performed better with a 33.99% return vs 21.34%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ARKW or SMH?

SMH is cheaper with a 0.35% expense ratio, compared with 0.76% for ARKW.

Which ETF pays a higher dividend yield, ARKW or SMH?

ARKW has the higher dividend yield at 1.67%, compared with 0.20% for SMH.

What is the main difference between ARKW and SMH?

ARKW is categorized as Mid Cap Growth Equities, while SMH is Semiconductors. They also come from different issuers: ARK and VanEck. Their fees differ too: 0.76% for ARKW and 0.35% for SMH.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (2.43 vs -0.14), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.